Cheaper iPad spells doom for tablet competitors
A new iPad 2 rumor is floating around today. The rumor is reinforcing one we heard before that said the existing iPad 2 would get cheaper to fight the Kindle Fire. I had mentioned when I wrote that other rumor story that I thought the iPad 2 would need to get cheaper than it is today to be able to complete with the Fire.
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The DigiTimes new rumor points to the price cuts I thought needed to happen. I had said we would see the iPad 2 drop to $199 or at least very close to that point. The $199 price of the iPad 2 doesn't seem feasible, but Apple is reportedly coming slow to that. Right now, the base iPad 2 is $499. Sources in the supply chain are claiming that the tablet will see a price cut to $399 for starters.
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The same sources claim that the price may ultimately be even lower at $349 to $299. I think Apple would decimate the tablet market if the iPad 2 dropped to $299. I also think that the rumors of production cutback on the iPad 2 don’t jibe with this rumor. Apple would probably sell more iPad 2's at $299 than it sells now meaning it would want more tablets, not less. I can’t wait to see how this shakes out.